Government, Taxes and Financial Crises

Augusto Hasman (), Angel L. Lopez () and Margarita Samartin ()
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Angel L. Lopez: Public-Private Sector Research Center, IESE Business School
Margarita Samartin: Business Department, Universidad Carlos III de Madrid

No 2010-01, Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE)

Abstract: This paper analyzes the effectiveness of different government policies to prevent the emergence of banking crises. In particular, we study the impact on welfare of using taxpayers money to recapitalize banks, government injection of money into the banking system through credit lines, the creation of a buffer and taxes on financial transactions (the Tobin tax). We illustrate the trade-off between these policies and derive policy implications.

Keywords: Banking crises; Information Induced Bank Runs; Government policies; Taxes. (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2010-01
New Economics Papers: this item is included in nep-fdg and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:fce:doctra:1001

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